If firms in a market have been prohibited from reaching the minimum efficient scale,
a. the market is probably perfectly competitive.
b. the market is probably a monopoly.
c. mergers will result if the restrictions are eliminated.
d. the LRATC curve has been shifting upward.
e. the LRATC curve has been shifting downward.
C
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In calculating GDP, "transfer payments" are
A) included because they are re-valuations of existing wealth. B) excluded because no goods or services were produced in exchange for them. C) included because they are payments for labor services. D) excluded because used goods already counted the year they were produced.
For superstar athletes
A) their entire earnings are economic rent. B) part of their earnings are economic rent. C) none of their earnings are economic rent since rent doesn't apply to labor. D) none of their earnings are economic rent since they will do some other work once they are too old to be an athlete.